M. Dias Branco posts net income of R$ 137 million in the first quarter

Ebitda (earnings before interest, taxes, depreciation and amortization) reached R$ 228.5 million, an increase of 103.8% compared to R$ 112.1 million in the first quarter of last year. The Ebitda margin stood at 14%, compared to 8.5% a year earlier, an increase of 5.5 percentage points. The results were released on friday night, the 8th, after the market close.
Net revenue rose 24.3% on the same comparative basis, reaching R$ 1.637 billion compared to R$ 1.317 billion in the first quarter of 2019. Of the total amount, R$ 25.1 million came from revenue from external sales - an increase of 103.2% compared to the previous year. Sales volume grew 22.4% in the period. "In order to meet the increased demand for our items, we have readjusted our production planning and encouraged the development of new distribution channels, such as online retailing," M. Dias said in a statement released to press and investors.
M. Dias' result came within the market's expectation, following the company's signalling in the last quarter of 2019 of a resumption of profit and revenue growth. The company has also demonstrated that it is migrating its operation and focus to higher value-added products, which contributes to improving its profitability margins.
M. Dias, like other companies in the sector, had quarterly performance driven by increased domestic demand for its products, as consumers adjusted to social distancing measures that resulted in the closure of restaurants and required more meals at home.